According to Hometrack, the average UK house price feel to £161,400, the lowest level since January 2006. House price values declined 1.1 percent in November, compared with a 1.3 percent drop in October.
The main factor behind the slump is the continued drop in mortgage approvals.
The Bank of England reported mortgage approvals fell by 1,000 from September to 32,000 – this equals the figure reached in August which is the lowest since comparable records began in 1993.
It shows the interest rate cut have done little to stimulate the mortgage market and more direct action may be needed.
The value of total new mortgages was also 67pc lower in October at £500m, compared with £1.5bn in September, and well below the monthly average of £2.7bn for the previous six months.
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